Fly America Act and Open Skies Agreement Charging Foreign Air Carrier Travel to Federal Awards Presented by: Office of Sponsored Projects Revised 08/20/18 PRN: 11/9/2018 9:46 AM

Topics Covered Travel Reminders Fly America Act Fly America Act Exceptions Open Skies Agreements Complying with the Fly America Act and Open Skies Agreements GSA City Pair Search Tool Egencia: Online Booking and Reservations Case Studies and Discussion Question and Answers

Travel Reminders Procedure 3301 PR.01 Travel Arrangements for University Business requires travelers to use the lowest available economy class airfare, consistent with business requirements. The charging of business or first-class air travel is not permitted to a federally funded award except….. When coach or economy class is not reasonably adequate for the traveler’s medical needs (such cases must be documented with a medical justification supplied by a primary care provider prior to confirming the reservation). The cost of the use of Wi-Fi during an airline flight, pillows and blankets and preferred seating in coach cannot be charged to federally funded awards. These costs must be supported with GA funds as noted in Policy 3301 section 3301.1: Travel on University Business: Air Travel.

Fly America Act

Fly America Act Travelers are required by 49 U.S.C. 40118, commonly referred to as the "Fly America Act," to use United States flag air carrier service for all air travel and cargo transportation services funded by the United States Government. Fly America Act – requires the use of a U.S. flag air carrier even if: A foreign air carrier service is less expensive, or A foreign air service is preferred by the traveler, or A foreign air service is more convenient.

Fly America Act Exceptions

Fly America Act Exceptions The Fly America Act… Requires the use of a U.S. flag air carrier for all travel supported by federal funds unless: A U.S. flag carrier is not available The use of a nonstop or direct U.S. flag air carrier service from origin to destination would extend travel time (including delay at origin) by 24 hours or more A U.S. flag air carrier does not offer nonstop or direct service between origin and destination, however…

Fly America Act Exceptions (continued) The Fly America Act… Requires that a U.S. flag air carrier must be used on every portion of the route where it provides service unless, when compared to using a foreign air carrier, such use would: Increase the number of aircraft changes outside the United States by two or more Extend travel time by at least six hours or more Require a connecting time of four hours or more at an overseas interchange point.

Fly America Act Exceptions (continued) The Fly America Act… Considers a U.S. flag air carrier service as unavailable when the elapsed travel time on a scheduled flight from origin to destination by a foreign air carrier is: 3 hours or less AND The use of a U.S. flag air carrier doubles the time enroute. Code-sharing agreements with foreign air carriers, whereby American flag air carriers purchase or have the right to sell a block of tickets on a foreign carrier, comply with the Fly America Act. The ticket, or documentation for an electronic ticket, must identify the U.S. carrier's designator code and flight number in order for the flight to be charged to a federal award.

Open Skies Agreement

* City Pair Restrictions Apply Open Skies Agreements Exceptions to the Fly America Act Open Skies Agreements May allow the use of non-U.S. flag air carriers Four (4) Agreements to-date: BUT travelers should be familiar with: U.S. General Services Administration (GSA) City-Pair Program City-Pair contract fare GSA negotiated discount fares available to U.S. Government employees only but can restrict use of Open Skies flights Restricted Open Skies Agreements prohibit the use of flag carriers from restricted countries if flying between the U.S. and the restricted country if a city-pair contract fare is available even though the traveler is not eligible for the city-pair fare. GSA City Pairs Program Fare Finder Australia* European Union Japan* Switzerland* * City Pair Restrictions Apply Note: Open Skies Agreements do not apply to travel supported with the Department of Defense (DOD) funds.

Open Skies Member States Open Skies Agreements Open Skies Member States European Union (EU) Carriers Not All-Inclusive Austria – Austrian Airlines Belgium – Brussels Airlines Bulgaria – Bulgaria Air Cyprus – Cyprus Airlines Czech Republic – Czech Airlines Denmark – Scandinavian Airline Estonia – None Finland – Finnair France – Air France Germany – Lutfhansa Greece – Aegean Airline Hungary – Wizz Air Iceland* – Icelandair, Wow Air Ireland – Air Lingus, Ryanair Italy – Alitalia Latvia – airBaltic Lithuania – None Luxembourg - Luxair Malta – Air Malta Netherlands – KLM Norway* – Norwegian Air Poland – LOT Polish Airlines Portugal – TAP Portugal Romania – TAROM Slovakia – None Slovenia – None Spain – Air Europa, Iberia Sweden – Scandinavian Airlines United Kingdom – British Airways, Virgin Atlantic (United Kingdom is still a member of the EU) * Iceland and Norway are not members of the EU but are included in the EU Open Skies Agreements

Open Skies Agreements Restricted Open Skies Agreements Countries City Pair Verification Required Australia Qantas Virgin Australia Switzerland Swiss Air Japan All Nippon Airways Japan Airlines GSA City Pair Program Search Tool

Complying with the Fly America Act and Open Skies Agreements

Fly America Act & Open Skies Agreements Matrix

Complying with the Fly America Act Compliance with the Fly America Act is the responsibility of the traveler and department. Before making arrangements for air travel related to Yale business, find out: What the funding source is for the travel Review Policy 3301 Travel on University Business, section 3301.01 Air Travel whether or not the travel is in accordance with the Fly America Act If you feel an exception is applicable, consult your business office or OSP Accountant Travelers are encouraged to use the University’s preferred travel vendor Egencia NOTE: When an exception to the Fly America Act exists, documentation supporting the exception should be retained at the time of booking and attached electronically with the travel reimbursement or retained in the department’s award file. Business office personnel should refer to the Fly America Act Checklist and Waiver Form 3301 FR.06 to determine if an exception qualifies for waiver.

Flying the Friendly Skies Origin and Destination Charged to: Airline Allowable? Mexico City to New York to Madrid Spain NIH award Iberia Airlines St. Petersburg Russia to Moscow DOD award S7 Airlines (Russian) New York (JFK) to Sydney Australia Dept. of State Qantas Sydney Australia to Cape Town S. Africa NSF award British Airways Toronto to Washington D.C. Air Canada New York to Paris to Geneva Swiss Air Yes Reason: Use of EU Open Skies Airline is acceptable for two points outside US Yes Reason: Requires verification that no US flag air carriers are available (None were available) No Reason: Requires verification of city pair contract (City Pair is Available) Yes Reason: Use of EU Open Skies Airline is acceptable for two points outside US No Reason: U.S. Flag Carriers are available. Canada is not eligible under Open Skies for charging Federal Funds No Reason: Requires verification of a city pair contract (City Pair is Available)

Test Your Knowledge: Case Studies

Case Study A Dr. Wayfaring is traveling to Taiwan to collaborate with researchers at the National Taipei University of Technology and to conduct research related to her NIH award. Since the trip is imminent, she quickly searches for flights on travelocity.com and books a first class, non-stop flight on Eva Airways, a Taiwanese air carrier, from New York – JFK to Taipei. Q: Is this an allowable charge on the NIH award? Q: How and where should this charge be made?

Case Study A: Analysis Q: Is this an allowable charge to an NIH R01 award? A: Purchase of a first class ticket is not allowable on a federal award. In addition, federal awards are required to comply with the Fly America Act. Therefore, since the ticket was purchased on Eva Airways and does not comply with the Fly America Act the ticket cannot be charged to a federal award. Q: Where can this expense be charged and how should it be charged? A: The cost of the ticket should be charged to a non-sponsored award. The difference between the cost of business class and economy class must be determined and this difference charged to spend category SC758: Travel- Unallowable.

Case Study B Dr. Wayfaring, now somewhat more aware of the federal requirements of her award, is traveling to Osaka Japan to attend a conference, where she is delivering a paper on another research study funded by a NSF award. She purchases a New York, JFK to Osaka, Japan first class airline ticket on Japan Airlines. Q. Is this an allowable charge to the NSF award?

Case Study B: Analysis Q: Is this an allowable charge to the NSF award? A: JFK to Osaka, Japan falls under the U.S. and Japan Open Skies Agreement. In order to charge the Japan Airlines ticket to the federal award, a city pair contract fare cannot exist between the origin and destination city. In this situation a city pair contract fare does not exist and therefore, the award can be charged. However... The coach fare equivalent is only allowable to be charged to the NSF award (must be documented at the time of reservation). The difference between first class and coach must be determined and charged to a non- sponsored award using the spend category SC258 Travel-Unallowable calculation.

Case Study B: Analysis An example of a city pair verification check, which illustrates that no city pairs exists between JFK and Osaka, Japan Documentation that supports the city pair verification and coach fare ticket portion charged to the award must be electronically submitted with the travel reimbursement or kept as part of the department’s award file.

GSA City Pair Search Tool

GSA City Pair Fare Search Tool The City Pair Program offers government employees fares lower than comparable commercial fares. Flights on airlines from restricted Open Skies countries flying to a destination within that country, and have a City Pair Fair, cannot be booked and charged to Federal awards. The City Pair search tool assists in identifying these fares. The search tool identifies whether a city-pair fare is in effect GSA Website: http://cpsearch.fas.gsa.gov/ Travel Resources Yale Travel website Yale Travel: Egencia Online Booking and Reservation Tool Yale Online Expense Management System International Visa Services (Login with code 40634) Yale Community Carbon Fund GSA City Pair Search Tool Yale Policy: 3301 Travel on University Business FAQs for City Pair Program Removed the following bullet. No one can find the video tutorial and rail booking isn’t Link provided within Egencia

Using the GSA Search Tool Go to the website: https://cpsearch.fas.gsa.gov/ Enter your departure and arrival cities Select: Search FY 18 If no city pairs exists, the following message will appear above the Fare Finder tab

Egencia: Online Booking and Reservations

Egencia: Setup Your Egencia Account First time users: Go to: www.Egencia.com Select: Login In the user name box enter your Yale email address Select: Forgot username and/or password and request a new password

Egencia Home Page The Message Center contains Fly America Act Requirements Favorite Links includes a shortcut to the GSA City Pair Search Tool Fill in your flight information and select: search flights

Egencia: Search for International Flight The following message appears when an international search is initiated:

Test Your Knowledge: Scenarios

Open Skies Booking: Scenario #1 When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract. No. Yes, and the award is funded by a Dept. of Defense (DOD) agency. Yes, and the award is NOT funded by a DOD agency. The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.” Read University Procedure 3301 PR.01 for specific “Open Skies” agreement information and restrictions.

Open Skies Booking: Scenario #1 When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract. No. Not government funded: select any carrier. Yes, and the award is funded by a Dept. of Defense (DOD) agency. Funded by DOD: select U.S. flag air carriers only, unless none are available. City Pair conditions do not apply. Yes, and the award is NOT funded by a DOD agency. Government funded but not by DOD: select U.S. flag air and EU carriers

Open Skies Booking: Scenario #2 When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract. No. Yes, and my award is funded by a Dept. of Defense (DOD) agency. Yes, and my award is NOT funded by a DOD agency. Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract IS in effect. (Use the GSA search tool.) Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract is NOT in effect. (Use the GSA search tool.) The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.” Read University Guide 3301 GD.02 for specific “Open Skies” agreement information and restrictions.

Open Skies Booking: Scenario #2 When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract. No. Select any carrier. Yes, and the award is funded by a Dept. of Defense (DOD) agency. Select U.S. flag air carriers only. Yes, and the award is NOT funded by a DOD agency. Check City-Pair. Yes, and the award is NOT DOD funded. Document that a City-Pair contract IS in effect. (Use the GSA search tool.) Select US and EU carriers, but not country’s flag carriers. Yes, and the award is NOT DOD funded. Document that a City-Pair contract is NOT in effect. (Use the GSA search tool.) Select US, EU carriers, including country’s flag air carriers.

Expense Report: GSA Results Screen Attach a copy of the GSA results screen to the expense report. Note: This GSA results screen must be attached. Eligibility to use the GSA contract price is irrelevant. If a city pair contract is in place the traveler is not allowed to travel on that country’s flag air carrier.

Class Take Aways The Fly America Act restricts the use of international flag air carriers charged to federal awards. Open Skies Agreements are exceptions to the Fly America Act. All Fly America Act exceptions and Open Skies Agreements exceptions must be documented by completing Form 3301FR.06. Review the Open Skies booking questions to ensure flights comply with the Fly America Act and Open Skies Agreements. Business and first class travel generally cannot be charged to federal awards. The exception to this is for doctor approved medical reasons or to avoid unreasonable risk to the traveler. Additional costs for pillows, blankets, Wi-Fi and preferred seating cannot be charged to a federal award.

Websites referenced in this presentation 2 CFR Part 200 (OMB Circular A-81) http://www.ecfr.gov/cgi-bin/text-idx?SID=15d5184c2810c3eef54cd7109663b443&node=pt2.1.200&rgn=div5 Form 3301 FR.06 Fly America Act Waiver Form: Travel on a non-U.S. Carrier https://your.yale.edu/policies-procedures/forms/3301-fr06-documentation-travel-non-us-flag-air-carrier General Services Administration (GSA) Airline City Pair Program Search Tool http://cpsearch.fas.gsa.gov/ General Services Administration (GSA) FAQs https://www.gsa.gov/portal/category/106159 Guide 1305 GD.07 Determining Allowability, Reasonableness, and Allocability of Costs for Sponsored Projects http://your.yale.edu/sites/default/files/1305gd_07reasonablenessallowability_1.pdf Guide 3301 GD.02 Use of U.S. Flag Carriers for Sponsored Foreign Travel https://your.yale.edu/policies-procedures/guides/3301-gd02-use-us-flag-carriers-sponsored-foreign-travel

Websites referenced in this presentation OSP: Find the OSP Accountant Assigned to Your Department https://your.yale.edu/policies-procedures/other/financial-reporting-portfolio-matrix Policy 3301 Travel on University Business http://your.yale.edu/policies-procedures/policies/3301-travel-university-business Policy 3301.1 Travel on University Business: Air Travel https://your.yale.edu/policies-procedures/policies/3301-travel-university-business#3301.1 Procedure 3301 PR.01 Travel Arrangements for University Business https://your.yale.edu/policies-procedures/procedures/3301-pr01-travel-arrangements-university-business Procedure 1305 PR.04 Unallowable Costs http://your.yale.edu/policies-procedures/procedures/1305-pr04-unallowable-costs Yale Travel Information and Egencia website http://your.yale.edu/administrative-services/travel-relocation-fleet/travel/egencia

Questions Email questions to: osp.trainings@yale.edu You will receive a response within 2 business days.

Review Questions and Answers

Case Study A Dr. Wayfaring is traveling to Taiwan to collaborate with researchers at the National Taipei University of Technology and to conduct research related to her NIH award. Since the trip is imminent, she quickly searches for flights on travelocity.com and books a first class, non-stop flight on Eva Airways, a Tiawanese air carrier, from New York – JFK to Taipei. Q: Is this an allowable charge on the NIH award? Q: How and where should this charge be made?

Case Study A: Analysis Q: Is this an allowable charge to an NIH R01 award? A: Purchase of a first class ticket is not allowable on a federal award. In addition, federal awards are required to comply with the Fly America Act. Therefore, since the ticket was purchased on Eva Airways and does not comply with the Fly America Act the ticket cannot be charged to a federal award. Q: Where can this expense be charged and how should it be charged? A: The cost of the ticket should be charged to a non-sponsored award. The difference between the cost of business class and economy class must be determined and this difference charged to Ledger Account 81036 Travel Expense.

Case Study B Dr. Wayfaring, now somewhat more aware of the federal requirements of her award, is traveling to Osaka Japan to attend a conference, where she is delivering a paper on another research study funded by a NSF award. She purchases a New York, JFK to Osaka, Japan first class airline ticket on Japan Airlines. Q. Is this an allowable charge to the NSF award?

Case Study B: Analysis Q: Is this an allowable charge to the NSF award? A: JFK to Osaka, Japan falls under the U.S. and Japan Open Skies Agreement. In order to charge the Japan Airlines ticket to a federal award, a city pair contract fare cannot exist between the origin and destination city. For this situation a city pair contract fare does not exist and therefore, the award can be charged. However... The coach fare equivalent is only allowable to be charged to the NSF award (must be documented at the time of reservation). The difference between first class and coach must be determined and charged to a non- sponsored award using Ledger Account 81036 Travel Expense (Travel-Unallowable) calculation.

Case Study B: Analysis An example of a city pair verification check, which illustrates that no city pairs exists between JFK and Osaka, Japan Documentation that supports the city pair verification and coach fare ticket portion charged to the award must be electronically submitted with the travel reimbursement or kept as part of the department’s award file.

Open Skies Booking: Scenario #1 When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract. No. Yes, and the award is funded by a Dept of Defense (DOD) agency. Yes, and the award is NOT funded by a DOD agency. The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.” Read University Procedure 3301 PR.01 for specific “Open Skies” agreement information and restrictions.

Open Skies Booking: Scenario #1 When traveling to a foreign country, (with the exception of Australia, Japan or Switzerland), determine if the trip is funded by a federal grant or contract. No. Not government funded: select any carrier. Yes, and the award is funded by a Dept of Defense (DOD) agency. Funded by DOD: select U.S. flag air carriers only Yes, and the award is NOT funded by a DOD agency. Government funded but not by DOD: select U.S. flag air and EU carriers

Open Skies Booking: Scenario #2 When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract. No. Yes, and my award is funded by a Dept of Defense (DOD) agency. Yes, and my award is NOT funded by a DOD agency. Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract IS in effect. (Use the GSA search tool.) Yes, and my award is NOT DOD funded AND I have documented that a City-Pair contract is NOT in effect. (Use the GSA search tool.) The U.S. Government has entered into “Open Skies” agreements with some countries. These agreements provide an exception to the “Fly America Act.” Read University Guide 3301 GD.02 for specific “Open Skies” agreement information and restrictions.

Open Skies Booking: Scenario #2 When traveling and the origin or destination is Australia, Japan, or Switzerland, determine if the trip funded by a federal grant or contract. No. Select any carrier. Yes, and the award is funded by a Dept of Defense (DOD) agency. Select U.S. flag air carriers only. Yes, and the award is NOT funded by a DOD agency. Check City-Pair. Yes, and the award is NOT DOD funded. Document that a City-Pair contract IS in effect. (Use the GSA search tool.) Select US and EU carriers, but not country’s flag carriers. Yes, and the award is NOT DOD funded. Document that a City-Pair contract is NOT in effect. (Use the GSA search tool.) Select US, EU carriers, including country’s flag air carriers.